This a policy document of Department of Energy, Government of Jharkhand. It states that the poor availability and inadequate availability of power has immensely affected the overall development of the state. Further the gap between demand and supply is increasing. Keeping in mind the overall development of the state and reduce the poverty an energy policy is so designed that caters to the needs of the people, is easily accessible and is of good quality and is available at a reasonable rate.

The objectives of the policy are as follows:

• Access to electricity to all households by 2014
• Power demand to be fully met by 2014. Energy and peaking shortages to be overcome and adequate spinning reserve to be available
•  Protection of consumers' interests
• Supply of Reliable and Quality Power in an efficient manner and at reasonable price
•  Per capita availability of electricity to be increased to over 1000 units by 2017
•  Financial Turnaround and Commercial Viability of successor utilities after unbundling of JSEB, thereby reducing the financing burden on the State over a period of time while recognizing the fact that during the initial transition period, state support would be a key determinant for the success of entire exercise
•  Optimization of generation of existing plants through renovation and modernization
•  To augment the transmission and distribution capacity and refurbish the existing capacity with a view to improving efficiencies, reliability & quality of supply and reducing losses
•  Encouraging eco–friendly generating units
•  Sourcing competitive and reliable bulk power from sources both within and outside the state 
•  Encouraging as a facilitater to IPPs who have entered into MoU for setting up thermal power generating plant in the State and supply of power to the State under first right of refusal limited to 25% of the installed capacity at price to be decided by Jharkhand State Regulatory Commission (JSERC)
• Encourage efficient usage of electricity & facilitate energy conservation measures including demand side management
•  To support the Jharkhand State Electricity Regulatory Commission with all policy and other administrative measures

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